The covid-19 pandemic struck the planet in 2020, causing a global health crisis. Many governments have enacted lockdown measures to combat the outbreak, which has disrupted global economic activity. The global economy shrank by 3.5 percent, while Thailand's economy shrank by 6.1 percent.
The Board of Directors is aware of such issues that affect the company's activities. Therefore, it evaluated the potential effect and updated its business strategy to respond to crises, including liquidity and financial status, cash flow management, cost analysis, investment plan, new products to meet consumer demand, and studying and using the benefits of government and related agencies' relief initiatives both domestically and internationally, such as in the United States and Australia. In addition, the company has adopted a cost-cutting and efficiency strategy, or "USE" policy to manage internally.
- • U: Utilization, we have looked at our entire business group’s activities to find the most effective way to use resources, such as, combining the group procurement for reasonable prices and good quality, and strengthening the EPG’s supply chain, and domestic and foreign sales units of all businesses to support distribution networks together.
- • S: Save, we look after and make the most of our spending economically without interfering business activities and progress, including energy, raw material purchase and selling, general & administrative expense, etc.
- • E: Efficiency, we measure our performance in various aspects to determine the work progress concretely, as a result of the “USE” policy, making a gross profit Margin at 31.2% in the fiscal year 2020/2021 (ended 31 March 2021), and reduce SG&A by 123.0 million baht compared to last year.
For the fiscal year 2020/2021, the total sales revenues, from 3 major businesses, was 9,569.2 million baht, down 6.3 % from the previous year, while the total net profit was 1,221.2 million baht, up 22.2 %. Although domestic sales of thermal insulation business continued to rise slowly, they started to show signs of growth in international markets following the gradual recovery of the construction industry due to its essential products, Aeroflex’s insulation, which is used in air conditioning systems, frozen food industry, pharmaceuticals, and cleanroom industries. The automotive parts and accessories business has recovered better than expected since Q2, in the fiscal year 2020/2021. Therefore, automotive accessories are needed to improve performance and safety. The plastic packaging business has been impacted by the drop in domestic demand, but benefited from plastic packaging, such as, food boxes, as consumers prefer to order delivery food or buy more food back at home. The company's products have become popular for new normal living.
Based on our previous performance, the Board of Directors approved an interim dividend payment for the first half year of 2020/2021 at the rate of 0.09 baht per share, or 252 million baht in total. The entire amount was paid on 9 December 2020. In this regards, there was a proposal for 2020/2021 AGM for additional dividend payment approval at the rate of 0.19 baht per share, amounted to 532 million baht. Therefore, overall dividend payment for this year is 784 million baht with the payout ratio of 64.2%
Our business success is to be the world class innovative leader and the global manufacturer and distributor for sustainable growth.
Creative Innovation Organization
EPG has highlighted the innovation as a key to business sustainable growth and resilience, apart from continuous R&D improvement. In recent years, surgical masks have become scarce due to the Covid-19 outbreak. The company recognizes the difficulties of providing quality face masks that meet safety requirements. As a result, there is a proposal to help society by maximizing our current technologies. Within a month of the group’s internal departments working together on research and development, the EP Kare mask, made of 2 layers of special polypropylene plastic, which can be reused by changing the filter, was introduced. The first batch of 200,000 items was donated to a variety of agencies in urgent need and distributed to employees and our stakeholders.
New plant and High-Speed Automation equipment have been designed to help Aeroflex USA Inc.'s expansion in the United States, lowering production costs and increasing productivity. These two investments would increase production capacity in the USA base by twofold. TJM Products Pty.Ltd. in Australia has added an online sales platform to improve consumer convenience and distribution quality. It is also expected to set up Asia Pacific Co., Ltd. to expand automotive accessories and strengthen safety under the TJM brand in Thailand and Asia pacific region.
Furthermore, the ocompany has looked after the wellbeing of workers who work on various manufacturing bases in different countries. There are steps in place to avoid the spread of the plant due to the covid-19 pandemic. Each section has a distinct screening and work zone separation. In addition, in the United States and Australia, the company receives grants from government and associated agencies in the United States and Australia under the Jobkeeper initiative to care for workers totaling 112.0 million baht.
To create Sustainable Growth
EPG’s expansion is in line with our corporate vision of a creative innovation organization that produces higher-quality products, benefiting society and community livelihoods. We aim to strengthen our business networks to help us success in the global market to achieve sustainable growth. In the fiscal year 2020/2021, the Board of Directors adheres to good governance in the business activities, resulting in,
- • The company is rated as an “Excellent CG Scoring” company with a 5-star ranking, reflecting the company's intention to grow its business with good governance and sustainable development.
- • Certified project membership of the CAC (Collective Action Coalition of the Private Sector Against Corruption), showing its clear intention to fight against corruption.
- • Outstanding Investor Relations Awards for listed companies with market capital values above 10,000 million baht but not exceeding Baht 30,000 million. The "SET Awards 2020" was organized by the Stock Exchange of Thailand in collaboration with the Bank's Financial Journal.
On behalf of the Board of Directors, we would like to express our sincere gratitude toward all employees, business partners, customers, shareholders, and relevant parties for your ongoing support and faithful trust. We are committed to achieve our business growth in compliance with good governance and sustainability with the balance of all stakeholders.
Mr. Vachara Tuntariyanond
(Chairman of the Board Officer)
Dr. Pawat Vitoorapakorn
(Vice Chairman and Chief Executive Officer)